tax free cash

shiredeon

I have transfered my plan to a sipp for drawdown and i was taking the tax free cash as i was purchasing a house, i am no longer doing so.
That being the case now, is there any advantage to leaving the TFC in the sipp for drawdown at a later date or should i take the cash, i will invest it anyway, the only thing i can see is that i will lose control of it. thanks.

dunstonh

Inside the SIPP it continues to grow tax free. No point withdrawing it until needed. You dont lose control of it as the investments will be no different to other tax wrappers.

Nick_C_4

Assuming you haven't already designated 75% of the pension for drawdown, that is. If you've done that then you will have to take the remaining 25% as TFC within 90 days or lose the right to do so. Then you'll only be able to take 25% of that 25% as TFC at some later stage.

shiredeon

Under the old rules as i was a high earner i can take 90k from a fund of 170k, however as i'm investing the money anywayi thought why take it out.

EdInvestor

Take the tax free cash SD.

Otherwise you will have invested all that money for all those years, receive no tax relief at all and end up with your capital trapped in the pension.

This would be madness.

dunstonh

EdInvestor wrote:

Take the tax free cash SD.

Otherwise you will have invested all that money for all those years, receive no tax relief at all and end up with your capital trapped in the pension.

This would be madness.

Why?

Take it out now and you the money will be reinvested with tax payable. Leave it in the pension and it can be invested in exactly the same way within a tax free environment. Wait until later and take 25% of the revised value then. You can only dip into the pension once to get that 25%. You cant do it again.

EdInvestor

He has an EPP worth 170k with TFC of 90k.

marly_2

I'm not sure where the messages came from in respect to Morgan Green Limited, but I used them very successfully in recovering compensation on my pension in May of this year. I found them very helpful, informative, professional and courteous.
I suggest that people get their facts right, before making such accusations

dunstonh

marly wrote:

I'm not sure where the messages came from in respect to Morgan Green Limited, but I used them very successfully in recovering compensation on my pension in May of this year. I found them very helpful, informative, professional and courteous.
I suggest that people get their facts right, before making such accusations

Guess you work for these cowboys. 1st post, just signed up.

They are nothing short of thieves with their approach to pensions.